What exactly is the difference between the two types of fees and do we include the investment fees or not in the required rate of return?
Usually what I did is - spending rate + management fees and inflation rate.
can someone pls help me to understand what investment fees really entail?
I saw MM that includes investment fees as part of the real rate of return
The curriculum uses the term “investment fees” exactly twice: once in a reading about hedge funds, and once in a reading on institutional portfolio management; both times, it’s used generically.
If they ask you to calculate a required rate of return on the exam, they won’t use the term “investment fees”; they’ll mention management fees, and you have to include those in your required return.
perfect!
Thank you
My pleasure.